Enabling Policy Frameworks for ICT Trade and Development

Training on Trade in Information and Communication ServicesWorld Bank - COMESA - WTOGeneva, 23-27 April 2007Session 9: Challenges of Domestic Regulatory Reform

Dr. Susan TeltscherChief, ICT Policy and Analysis Unit

ICT and e-Business Branch, SITEUNCTAD

Enabling Policy Frameworks for ICT Trade and Development

This presentation

• National ICT strategy concept• Policy examples• Review and evaluation• UNCTAD assistance

UNCTAD and ICT for Development

National ICT Strategies: main objectives

• Raise awareness about the role of ICT for development

• Create an enabling environment for the adoption of ICT

• Build capacity & skills for the information economy

National ICT policy framework

Source: UNCTAD (2003) E-Commerce and Development Report

Basic elements of an ICT policy framework

1. ICT infrastructure, connectivity and access

2. Legal and regulatory framework3. ICT human resources and skills4. Business development5. ICT-related trade and investment

policies6. E-government7. Technological innovation (R&D)

2. Legal and regulatory framework

• Telecom regulation• Trade and investment regulation• E-commerce laws• Taxation

Regulating e-commerce

Need for trust

Regulating e-commerceInternet:

Actors:BusinessesConsumersPublic admin.Intermediaries

no borders - no locationdecentralised (no inherent control) ubiquity (too many rules)rapidity (urgency for quick dispute resolution)

ISP

RoutersWeb server

Consumer

CorporateUser

Dial-up

Leased lines

Backbone network

Internet Exchange Point

Regulating e-commerce

Privacy/ Data protection

Security/ authentication

Intellectual property

rights

Liability of ISPs

Content regulation

Internet governance

e-payments Consumer protection

Jurisdiction Applicable law e-contracting e-signatures

Dispute resolution

Spam Cybercrime Negotiability/ documents of

title

Legal solutions

• International legal instrumentsModel laws/ guidelines

UNCITRAL Model Laws on e-commerce and electronic signatures EU Directives on Electronic CommerceCouncil of Europe Convention on Cybercrime

Legal solutions

• International legal instrumentsContractual approaches

European model EDI AgreementCode of conduct – self regulation

UN/CEFACT ModelInternational convention

UNCITRAL Convention on e-contracting

Basic legal infrastructure

• Recognition of electronic messages• Electronic signatures• Online dispute resolution• Cybercrime





5. ICT-related trade and investment policies

• Increase trade in ICT goods and services• Attract FDI• Promote ICT-related activities (e.g.

outsourcing/offshoring) • Develop the domestic IT industry

The Indian case: trade in ICT- enabled services has witnessed phenomenal growth

1.4 1.9 2.6 3.96.0

1.84.0

7.7

12.8

23.6

13-15

7.2

60 +

31.0

FY98 FY00 FY02 FY04 FY06 FY07P FY10^

DOMESTIC MARKET* EXPORTS*

USD Billion

Source: NASSCOM ^NASSCOM McKinsey Study 2005

FY00-10 22.1% 31.2%21.1% 34.6%

28.9%FY00-06 31.0%

CAGR

10 YR TARGET

ACHIEVED* Includes IT Software and Services, ES and Products, as well as ITES-BPO

TOTALPERIOD

Trade and investment policies

• GATS commitments

• FDI restrictions (foreign ownership, screening procedures, operational)

• Investment incentives (stable, secure environment, tax breaks)

WTO Market access commitments for computer & related services (Mode 1)

Source: UNCTAD (2006)

WTO Market access commitments for computer & related services (Mode 3)


UNCTAD FDI study (2006)• FDI restrictions in services

(index-based)• Telecom highly restricted• GATS underestimates

degree of FDI openness• Positive correlation between

FDI inflows and degree of openness (but outliers)

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70En

viro

nmen

tal

Con

stru

ctio

n

Tour

ism

Hea

lth

Educ

atio

n

Dis

tribu

tion

Busi

ness

All s

ervi

ces

Fina

nce

Tran

spor

t

Com

mun

icat

ion

Elec

trici

ty

FDI restrictions by service sector, 2004


0.00

0.10

0.20

0.30

0.40

0.50

0.60N

. Afri

ca

Oth

er A

frica

Wes

t Asi

a

Sou

th A

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Sou

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ast A

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Eas

t Asi

a

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th A

mer

ica

Oth

er L

atin

Am

. & C

arib

.

Cen

tral a

nd E

aste

rn E

urop

e

Wor

ld


FDI restrictions by region, 2004

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Cze

ch R

ep. o

f

Boliv

ia

Uga

nda

Rom

ania

Arge

ntin

a

Para

guay

Jam

aica

Sene

gal

Gua

tem

ala

Hun

gary

Mor

occo

Mon

golia

Peru

Chi

le

Slov

enia

Pola

nd

Ecua

dor

Uru

guay

Trin

idad

& T

obag

o

El S

alva

dor

Tanz

ania

, UR

of

Turk

ey

GATS

Baseline (GDP w eights)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Col

ombi

a

Sout

h Af

rica

Dom

inic

an R

ep.

Cos

ta R

ica

Moz

ambi

que

Vene

zuel

a

Braz

il

Nig

eria

Egyp

t

Kore

a, R

ep. o

f

Gha

na

Sri L

anka

Mex

ico

Paki

stan

Mau

ritiu

s

Keny

a

Tuni

sia

Chi

na

Indi

a

Thai

land

Mal

aysi

a

Qat

ar

Indo

nesi

a

Philip

pine

s


FDI restrictions lower than GATS

Asia is ICT TNCs’ main target

In which of the following regions does your company currently invest or intend to invest (%)?

42.4

45.5

57.6

66.7

69.7

69.7

0 10 20 30 40 50 60 70 80

Africa

Latin America

Middle East

Eastern Europe

South-East Asia

Other dev. countries in Asia


Policies to attract ICT investors

Factors that your company considers in choosing a developing country as a potential location for investment

4.3

4.7

5.2

5.7

5.7

6.0

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

Investment incentives

Education of workforce

Workforce IT competence

Cost of production

General policy environment

Access to markets






WSIS target: all countries have a national ICT strategy by 2010

2006: how many developing countries have adopted an ICT strategy or master plan?

National ICT strategy

• 181 developing and transition countries and territories surveyed by UNCTAD


UNCTAD survey on national ICT master plans in developing countries

No information available

36 countries are designing an ICT plan (20%)

80 countries have adopted an ICT plan (44%)

The way ahead: ICT policy reviews

• National ICT plans exist in many developing countries

• Need to assess and evaluate policies

• ICT monitoring and measurement

• UNCTAD: ICT policy reviewframework for the information economy

ICT infrastructure & accessAccess to & use of ICTs by households and individualsUse of ICTs by businessesICT sector and trade in ICT goodsOther ICT indicators

ICT environment ICT policy framework

Objectives and priority areas & strategic approachICT infrastructure development Legal and regulatory framework ICT human resources/skills Business developmentICT-related trade & investment policiesE-governmentTechnological innovation (R&D)

Implementation &Institutional framework

Integration of ICT policies in national development plans /PRSPInstitutional setup for implementation of ICT planPolicy coordination Financial resourcesMonitoring and evaluation

Policy recommendations Tran

spar

ent a

nd c

ontin

uous

con

sulta

tion

proc

ess

with

all

stak

ehol

ders

Revised ICT master plan/policies

Assessment of existing ICT master plan

Indicators of achievement – identification of success factors, best practices, lessons learnt and challenges ahead

ICT uptake and use indicators


UNCTAD ICT policy review model framework

National ICT policies and indicators

• Quantitative measurement of ICT uptake and use is one of the three pillars in ICT policy review model framework

Role of indicators• To assess the impact of ICTs on economic

growth, trade, and development

• To collect evidence on ICT uptake and use at the national level

• To better target national ICT policies and create an enabling environment for e-business

• To benchmark your country’s information economy against those of your neighbors, and globally

• To take informed investment and business decisions

Closing the data gap in developing countries


International level

ITUOECDUNCTADUNESCO Institute for Statistics(UN ICT Task Force - GAID)World Bank

Regional level

ECAECLACESCAPESCWA Eurostat

Current members

http://http://measuringmeasuring--ict.unctad.orgict.unctad.org

Role of indicators – global initiative

http://measuringmeasuring--ict.unctad.orgict.unctad.org





Conclusion

National ICT Strategies:

• Promote infrastructure, connectivity and access• Build human competence• Adequate legal and regulatory framework• Business sector policies• E-government• Technology and innovation• Carry out periodic ICT policy reviews – role of ICT

indicators

National ICT Policy ReviewsLegal aspects of e-commerce (advisoryservices, drafting of legislation, seminars, 1-week training course)

ICT measurement (advisory services, methodological manual, seminars, 1-weektraining course)

UNCTAD ICT Technical Assistance

Information Economy ReportThe Information Economy Report 2006: The Development Perspective

Provides unique data on the adoption of ICT by enterprises in developing countries. It also explores ICT policy options in a developing-country context and proposes a framework for national ICT policy reviews and for the design and assessment of pro-poor e-strategies.

WTO-WB-COMESA Training on Trade in Information and Communication Services Geneva, 23-27 April 2007

[email protected]/ecommerce

measuring-ict.unctad.org

Thank youThank you

mailto:[email protected]

http://www.unctad.org/ecommerce

http://www.measuring-ict.unctad.org/

Enabling Policy Frameworks for ICT Trade and Development

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